Loans at the flea market?
I was surprised to hear that investors own about 20% of the bay area homes in foreclosure. It should not be a surprise that speculators are left holding the bag. That happens a lot is situations like this. I wonder if I will hear any politicians talk about this. I am not sure anyone will ask what it means that home flippers got caught.
I am not sure what will be done about the subprime mortgage meltdown, but I have the feeling it will be the wrong thing. The problem is that some of the people that made money were people who sold their homes. Not a politician in the world will go after them. I am worried that the actions of politicians will keep home prices high and will benefit people who took the wrong risk this time. That will just encourage people to make the wrong choices again. That is what happens when politicians mess with markets.